Cynical firms cashing in as fans flock to buy new World Cup TVs

Football fans searching for their dream television in time for the World Cup could find themselves more than £1,000 out of pocket after being sold 'obscene' credit deals and insurance.

Retailers investigated by Money Mail are flogging extended warranties for up to £500 and adding almost 50 pc to the price of a television by charging anything up to 29.9pc interest.

At Comet, a £2,000 plasma television would end up costing £3,503 - an increase of 75pc - if bought on credit over four years with a five-year warranty thrown in.

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Martyn Saville, credit expert at Which?, says: 'If you have an interest rate of 29.9pc, that's obscene. Don't let your enthusiasm for the World Cup blind you to the real cost.

'You may be paying off debt at a high rate for years after it's all over, and then you'll be left with a debt headache as well as a football hangover.'

Household brands are setting their standard interest rates at more than 20 pc APR, despite the market average standing at 17pc and some supermarkets giving credit for nothing. The APR is an eye-watering 29.9 pc at Brighthouse, 24.9pc at Comet or 27.9pc at Argos.

At Brighthouse, the 42in Philips LCD TV costs £1,196.36, but bought on credit over 156 weeks, the total cost would be £1,722.24 - an extra 44pc.

Meanwhile, a TV worth £2,000 would cost £2,978.13 at Comet if paid for on credit over four years - an extra 49pc.

Experts at Which? are advising those who need credit to ignore the sales pitches and take out a Clubcard credit card with Tesco, which charges 0pc for 12 months and then 16.9pc afterwards.

Several retailers, including Argos and Littlewoods, are marketing 'buy now, pay later' deals, branded as 'misleading' by the charity Credit action because customers are heavily penalised when they do not pay by a specified date.

Chris Tapp, director, says: 'A lot of people will be tempted by the offer of interest-free credit or low payments upfront, or even low monthly instalments. But actually, is it going to be affordable when you have to make these repayments?

'Sometimes the impact it's going to have for the person concerned is not fully spelt out.'

Littlewoods' scheme, advertised as 'buy now, pay May 2011', forces customers to pay back-dated interest of 29.9 pc APR if they pay nothing within the year. This detail, in the small print of the terms and conditions, would mean up to £661.82 extra added on to the new £1,899 Samsung 50in 3D plasma TV - before anything is even paid back.

Shoppers are also wasting their money with extended warranties, as most manufacturers provide a one-year guarantee for free and the likelihood of televisions breaking down is small.

At Comet, a five-year warranty for a £2,000 plasma television would cost 26 pc more again at £524.99, while one for a £200 LCD television would increase the price by 50pc at £99.99.

'Are you prepared to spend hundreds of pounds on the slight possibility that it might break down?' asks Michael Briggs, TV expert at Which?

'You could spend hundreds more on a product that costs £500. Then, if it breaks down after the warranty period, you have to pay to get it repaired anyway.'

Even without a warranty, the Sale of Goods act protects those who can prove their product is faulty. However, for those seeking peace of mind, John Lewis provides a free five-year guarantee, while Richer Sounds refunds customers who do not use their warranty.

When contacted by Money Mail, Brighthouse, Littlewoods and Argos said they were responsible lenders dedicated to good customer service.

Brighthouse said stores had discretion to help customers in 'difficult circumstances' and claimed 29.9pc was lower than alternative credit providers comparable to other mainstream retailers.

A Brighthouse spokesman says: 'all of our charges are clear and transparent. they are made clear at point of sale, and again in the agreement Guide which every customer is taken through before they sign the contract.'

Argos adds that it was committed to making documentation clear and communicating with customers about their payment plans.